Impact of Conservation on Rates and Operating Costs

Abstract

The potential impact of 20% reduction in water usage through water conservation is investigated for a small investor owned utility serving the rural residential community of Stewartstown Borough, Pennsylvania. The analysis of short‐term impact shows that the average bill would be reduced by 16% if rates had not been changed; however, the company's operating expenses would only have been reduced by 2%. The long‐range impact is investigated using present worth analysis, A 20% reduction in water use would have saved $71,280 in present worth (1976) for storage and source facilities and operating costs. The savings in capital and O&M costs would eventually translate into savings in water bills of the customers over the years.